The way the stock market functions

Dear Editor,

I invest in shares in the UK stock market. Some companies I have invested in have issued new shares at a lower price, thereby diluting my holding and reducing the share price. The result is, I end up having less money than I invested and fewer voting rights.

So if you believe that the Berbice River Bridge share ownership structure is heavily in favour of private investors, then think again. That is how the whole stock market in the whole world functions.

It is not right for a company to issue shares at ½ or 1/5th the value to attract investors. But that is how the stock market functions.

All the government needs to do to dilute shareholders’ voting rights/control over the company, hence their profits, is to issue new shares in the Berbice River Bridge holding company.

But then again, investors have a right to recoup their investment in the shortest time within reason or nobody would want to invest in Guyana.

Yours faithfully,

Sean Ori